Based on derivation of permanent income hypothesis (PIH), the conflict is analyzed between expected profitability of migrants and government policy in resettlement protect. Government has provided compensation for relevant building and land losses, but farmers are still unwilling to dismantle and move. On the contrary, it results in more serious social problems. The implementation and effect of resettlement policy is analyzed sustainable development of resettlement: change ideas of resettlement to promote establishment of civil rights protection ideas; carry out early survey to protect rights and interests of owners and migrants; communicate with migrants to ensure their smooth appeal channel; and enhance coordination work with government department to ensure smooth completion of resettlement.